As home prices begin to fall, but still remain at near all-time highs, many homeowners are listing their properties to see if they can lock in some of the profit they’ve realized in the last few years.
But the problem many homeowners are finding is that their once hot properties aren’t as hot as they may have conceived, and potential buyers are holding off while prices drop even further.
While this may not be a problem for some, once a property is listed, it must be removed from the MLS and six months must go by before many mortgage lenders will consider refinance the listed property.
Many banks and lenders enacted this rule because it doesn’t make much sense for a lender to provide financing or cash-out if a homeowner failed to sell their home on the open market, and then turns to the lender for an improved mortgage rate and better terms.
So if you plan to sell, make sure you’re happy with your current mortgage rate and loan program, because if your home fails to sell, you’ll have a tough time finding a bank or lender that will refinance your home in the near future.